Court Sets June 25 Ruling in Okiya Omtatah Ksh 6.9T Debt Case

Court Sets June 25 Ruling in Okiya Omtatah Ksh 6.9T Debt Case

The High Court has set June 25 as the date it will deliver a pivotal ruling in a case challenging the legality of Kenya’s public debt, a petition spearheaded by Busia Senator Okiya Omtatah

The case, which has drawn national attention due to its potential economic and constitutional implications, seeks to nullify approximately Ksh6.95 trillion in loans allegedly contracted unlawfully during the administration of former President Uhuru Kenyatta.

In proceedings held this week, the court confirmed that it would first determine several preliminary applications before deciding whether the matter can proceed to full hearing. Among the issues under consideration is a request by the International Monetary Fund to be removed from the case.

The IMF argued that it is shielded from legal proceedings in Kenyan courts under an immunity agreement signed in 1963. “The IMF has immunity protection under international agreements and should not be subjected to domestic litigation,” its legal representatives submitted.

At the core of the petition is a bold argument advanced by Omtatah and fellow litigants, who claim that a significant portion of Kenya’s debt qualifies as “odious” and should not be repaid by citizens. “A substantial part of the public debt was incurred outside the law and should not burden taxpayers,” the petition states.

The case has also attracted responses from several high-profile state actors and institutions. The Office of the Attorney General, backed by the National Assembly, urged the court to dismiss the matter, terming it premature. The State pointed to an ongoing audit by the Office of the Auditor-General of Kenya as a necessary first step.

“The court should await the outcome of the special audit before proceeding further,” the Attorney General argued, suggesting that the findings would provide clarity on the country’s debt position.

In addition, former Auditor-General Edward Ouko and former Controller of Budget Agnes Odhiambo have both sought to be excluded from the proceedings. They maintain that actions taken during their tenure were executed in good faith and are protected by personal immunity.

Current office holders, Auditor-General Nancy Gathungu and Controller of Budget Margaret Nyakang’o, also raised objections, stating that legal action should be directed at their offices rather than them as individuals. “Only the constitutional offices can be sued, not the individuals holding those offices,” their submissions indicated.

Despite the petitioners expressing readiness to proceed, several respondents requested more time to respond to filings, prompting the court to allow an additional seven days for submission of affidavits and written arguments.

The outcome of the June 25 ruling could significantly shape the direction of the case. If the Attorney General’s application succeeds, the petition could be dismissed at a preliminary stage without a full hearing. However, if the court rejects the objections, it will pave the way for a substantive examination of the claims.

Central to the petition are allegations that between 2014 and 2024, billions of shillings were borrowed in violation of constitutional and financial regulations. The petitioners claim that some loans, including proceeds from Eurobonds, were not tied to development projects, were excluded from appropriation laws, or were routed outside the Consolidated Fund.

“These borrowings violated constitutional safeguards and lacked transparency and accountability,” the petitioners argue, invoking the doctrine of odious debt to support their case.

The suit names 22 respondents, including former government officials, Treasury representatives, and international lenders. It also seeks to hold individuals personally liable for any unlawful borrowing, marking a potentially unprecedented move in Kenya’s legal and financial history.

As the June 25 deadline approaches, the case is expected to remain under close public scrutiny, given its far-reaching implications on governance, accountability, and the country’s economic future.

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Court Sets June 25 Ruling in Okiya Omtatah Ksh 6.9T Debt Case